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Edmonton Real Estate Market Update: February 2025 Trends

The Edmonton real estate market is constantly evolving, and February 2025 is no exception. Whether you’re a homebuyer, seller, or investor, understanding the latest trends can help you make informed decisions.

1. Home Prices & Sales Activity

Single-family homes saw a moderate price increase due to strong demand in desirable neighborhoods like Windermere, Terwillegar, and the University area.

Condo sales remain stable, with affordable options attracting first-time buyers.

Inventory levels are slightly higher than last month, giving buyers more choices.

2. Interest Rates & Market Impact

With mortgage rates hovering around 5-6%, affordability remains a key factor.

Buyers are more strategic, focusing on move-in-ready homes and competitive pricing.

3. Seller & Buyer Tips

Sellers: Invest in staging, professional photography, and strategic pricing to stand out.

Buyers: Be prepared with pre-approval and move quickly on well-priced homes.

Final Thoughts

The Edmonton housing market remains strong, with great opportunities for both buyers and sellers. If you're considering a move, having an experienced agent by your side makes all the difference.

Contact Nooran Ostadeian today for expert advice and personalized real estate solutions.

Keywords: Edmonton real estate market update, home prices in Edmonton, real estate trends 2025, buying a home in Edmonton, selling a home in Edmonton.

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Low Inventory Fuels a Seller’s Market in Edmonton Real Estate


Market Statistics – December 2024

As we wrap up 2024, Edmonton's real estate market continues to favor sellers, with low inventory levels playing a major role. The latest statistics from the Greater Edmonton Area (GEA) reveal key insights into December’s housing market trends, showcasing increased demand and rising prices compared to last year.

Residential Sales Snapshot

In December 2024, 1,428 residential properties were sold across the GEA—a seasonal decline of 25.4% from November, yet a remarkable 17.2% higher than December 2023.

  • Detached Homes: 826 units sold, down 27.2% month-over-month, but up 18.8% year-over-year.

  • Semi-Detached Homes: 165 units sold, a 15.8% monthly decrease, but a 18.7% annual increase.

  • Row/Townhouses: Sales dipped 22.9% month-over-month, but were 13.1% higher than last year.

  • Apartment Condominiums: Sales were down 27.1% from November, but still 15.1% higher year-over-year.

Low Inventory Challenges

New residential listings dropped to 1,367, a sharp 33.3% decrease from November and 7.3% lower than last December. This decline contributed to an overall inventory drop of 22.5% month-over-month and 24.6% year-over-year, emphasizing the seller’s market conditions.

Rising Home Prices

Despite fewer sales, average home prices in the GEA remain strong:

  • Overall Residential Average Price: $435,549, unchanged from November but up 12.2% year-over-year.

  • Detached Homes: $540,232, steady from November and 10.6% higher than last year.

  • Semi-Detached Homes: $408,823, a 1.6% monthly increase and 12.3% annual growth.

  • Row/Townhouses: $292,640, up 1.4% from November and 12.3% year-over-year.

  • Apartment Condominiums: $203,920, rising 1.8% month-over-month and 19.8% annually.

The MLS® Home Price Index (HPI) composite benchmark price climbed to $403,900, reflecting a 0.4% monthly increase and a 7.8% annual rise.

Days on Market

Homes took slightly longer to sell in December, with the average days on market increasing to 44, up four days from November. However, properties are still selling faster compared to December 2023, with an overall eight-day decrease year-over-year.

  • Detached Homes: 44 days (up 3 days from November).

  • Semi-Detached Homes: 33 days (up 1 day).

  • Row/Townhouses: 38 days (up 2 days).

  • Apartment Condominiums: 57 days (up 9 days).

Looking Ahead to 2025

“The typical seasonal slowdown is reflected in December’s numbers,” says Melanie Boles, 2024 Board Chair of the REALTORS® Association of Edmonton. “However, the year-over-year growth in sales and prices highlights the resilience of Edmonton’s real estate market. We’re optimistic about the opportunities ahead in 2025.”

Source: Realtors Association of Alberta 

What This Means for Buyers and Sellers

If you’re thinking about selling, the continued demand and low inventory levels present a golden opportunity. For buyers, acting quickly and staying informed is key in this competitive market.

Stay ahead of Edmonton’s real estate trends by working with a trusted professional. Contact Nooran Ostadeian at nooranrealty.com or call/text 780-953-0723 for expert advice tailored to your needs.

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Housing Interest Rate Forecasts

Housing and Interest Rate Forecasts for 2025

As we reflect on 2024, Canada’s housing and mortgage markets demonstrated resilience amidst a challenging economic environment. The Bank of Canada’s pivot to interest rate cuts after two years of hikes provided much-needed relief to borrowers, stabilizing the housing market with moderate gains in home sales and prices across the country.

However, recovery was uneven, with many mortgage holders still grappling with elevated borrowing costs and persistent challenges in housing supply. As we look ahead to 2025, optimism is tempered with caution. Here’s what leading economists and analysts predict for Canada’s housing market and interest rates:


Real Estate Market Outlook

2025 housing market forecasts

Canadian Real Estate Association (CREA)

  • Home Sales Forecast: 499,816 (+6.6% year-over-year)

  • Home Price Forecast: $713,375 (+4.4%)

  • Commentary: CREA anticipates a gradual improvement in home sales, with a sharper rebound in spring 2025. While the market may remain stable in early 2025, momentum is expected to strengthen by mid-year.

  • Source

Royal LePage

  • Q4 2025 Home Price Forecast: $856,692 (+6% year-over-year)

  • Commentary: A backlog of eager buyers, coupled with changes in mortgage lending rules, will drive demand. The Bank of Canada’s recent rate cuts are expected to boost buyer confidence, with significant activity forecast for late 2025.

  • Source

Re/Max

  • National Average Price Increase: +5% year-over-year

  • Commentary: Re/Max predicts a more active housing market in 2025, with sales increasing in most regions surveyed. Average residential prices are expected to rise, bolstered by easing interest rates.

  • Source

RBC Economics

  • Home Resales Forecast: 518,400 (+12.5% year-over-year)

  • Home Price Forecast by Q4: $809,900 (+1.6%)

  • Commentary: RBC expects gradual price appreciation as affordability improves. Further rate cuts are anticipated to encourage buyers sidelined by higher costs.

  • Source

TD Economics

  • Home Sales Growth: +15.8%

  • Home Price Growth: +8%

  • Commentary: Falling borrowing costs and sustained economic growth are expected to propel the market forward. Changes to mortgage rules implemented in late 2024 will further enhance demand.

  • Source


Interest Rate Forecasts

The Bank of Canada’s rate cuts in 2024, totaling 175 basis points, set the stage for continued easing in 2025. Economists predict a cautious approach, with the overnight rate likely falling to between 2.00% and 3.00% by mid-2025, depending on inflation and economic performance.

Fixed Mortgage Rates

Bond yields, which heavily influence fixed mortgage rates, are expected to remain steady, hovering around 3.00%. This stability will likely provide predictability for fixed-rate mortgage borrowers.

Variable Mortgage Rates

Variable-rate loans should see further reductions as the central bank continues to ease monetary policy. Borrowers can expect incremental relief throughout 2025.

Key Takeaways

  1. Modest Market Growth: Housing sales and prices are forecast to increase, driven by improved borrowing conditions and renewed buyer confidence.

  2. Rate Relief: Continued rate cuts will offer relief, but affordability challenges remain, particularly in high-demand urban markets.

  3. Policy Impacts: Changes to mortgage lending rules are expected to enhance affordability and stimulate demand.

Here are the latest interest rate and bond yield forecasts from the Big 6 banks, with any changes from their previous forecasts in parenthesis:

While 2025 holds promise for Canada’s housing market, ongoing supply constraints and affordability issues will remain focal points for policymakers, buyers, and sellers alike. As the market evolves, staying informed will be key to navigating opportunities and challenges in the year ahead.

Conclusion

The Canadian housing market in 2025 offers a cautiously optimistic outlook, with growth anticipated in sales and home prices driven by lower interest rates and renewed buyer confidence. However, affordability and supply constraints will continue to shape market dynamics. As your trusted real estate professional, I am here to provide insights and guidance tailored to your needs. For personalized advice and expert market knowledge in Edmonton’s real estate landscape, contact Nooran Ostadeian at RE/MAX Elite.

📞 Call/Text: 780-953-0723
🌐 Visit: realtyedmonton.ca | nooranrealty.com
📍 Office: 5083 Windermere Boulevard SW #302, Edmonton, AB T6W 0J5

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Copyright 2025 by the REALTORS® Association of Edmonton. All Rights Reserved.
Data is deemed reliable but is not guaranteed accurate by the REALTORS® Association of Edmonton.
The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA.